Cities, workers, and wages: A structural analysis of the urban wage premium
Cities, workers, and wages: A structural analysis of the urban wage premium
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DOI:
10.1111/j.1467-937x.2007.00428.x
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发表时间:
2007-04-01
影响因子:
5.8
通讯作者:
Gould, E. D.
中科院分区:
文献类型:
--
作者:
Gould, E. D.
Workers earn higher wages in cities vs. rural areas. This gap could arise because cities make workers more productive, or it could be the result of a non-random selection of workers into cities based on their ability and their endogenous history of career choices. To untangle these issues, this paper estimates a dynamic programming model, which embeds the choice of residing in a city or rural area within a model of career choices over time. After controlling for all the sources of selection and endogeneity, the estimates indicate that a given worker does earn more in the city for white-collar work, but not for blue-collar work. In addition, city work experience is found to be worth more than rural work experience in the rural area for white-collar work, but not for blue-collar work. These results support the interpretation that cities make white-collar workers more productive and suggest that workers may consider moving to the city not only in terms of locational choice, but also as a form of human capital investment.